City launches development fund
The ECED Fund is exclusively reserved for Ekurhuleni-based entrepreneurs.
On November 1, the Ekurhuleni Council approved the implementation of the Ekurhuleni Community Enterprise Development Fund policy in line with the Municipal Finance Management Act (MFMA).
The Ekurhuleni Community Enterprise Development (ECED) mandate is to support the development of community enterprises in the form of individual entrepreneurs, small, micro and medium enterprises, cooperatives, informal traders and formal businesses as prescribed.
The ECED Fund is anchored by the Ekurhuleni Ten Point Economic Plan, which is a deliberate programme to position the Gauteng Eastern Development Corridor as the anchor and footprint of the provincial economy.
The city has adopted a bottom-up approach which will deliberately focus on funding small businesses.
The small- and medium-sized enterprise sector is currently responsible for 60 per cent of jobs in the country.
The city has prioritised this sector as a job creation catalyst which must be leveraged immediately.
The ECED Fund seeks to enable the syndication of enterprise, suppliers and incubation development interventions through non-financial and financial interventions, such as business support, technical support, co-funding, export promotion, incubation, pitching competitions and business infrastructure support, among others.
The ECED Fund is characterised by the following funding groups:
• Mbewu Fund: Mbewu is the Tsonga word for seed.
The Imbewu Fund will focus on Business Seed Funding for local entrepreneurs, businesses and organisations through grants issued by the city.
The funding threshold is R50 000 to R1.5-million.
• Fetola Fund: Fetola is the Southern Sotho word for transformation.
The Fetola Fund will focus on transformative projects, equity financing and the promotion of commercial participation and expansion.
The fund will be syndicated by the National Empowerment Fund in collaboration with the city.
The funding threshold is R100 000 to R8-m.
• Phanda Fund: Phanda is the isiZulu slang word for hustling.
The Phanda Fund will focus on providing business support, enablement funding, seed funding and advisory services.
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The fund will be syndicated through the National Youth Development Agency, Small Enterprise Development Agency, the Gauteng Enterprise Propeller, and the city.
The funding threshold is R100 000 to R3-m.
“Developing a more inclusive and responsive job creation strategy is a top priority for the city,” said Ekurhuleni mayor Clr Mzwandile Masina.
“The city must create an entrepreneurial eco-system that promotes the development of high-impact startups, which will have an employment growth quantifier of two or more if we want to reverse our current unemployment crisis.
“The ECED Fund was created in line with the city’s pro-poor approach to governance.
“We want to provide access to funding for informal traders, cooperatives, micro-entrepreneurs, and young start-up founders.
“Access to financing for young black entrepreneurs, and females in the main remains a serious challenge.
“If we are to correct the economic injustices of our past, we must unashamedly support small black businesses.”
The ECED Fund is exclusively reserved for Ekurhuleni-based entrepreneurs.
The application window for the ECED Fund will open on November 11 and will close on January 31, 2020.
Application forms will be available from the city’s website and the Ekurhuleni Economic Development Department offices in Kempton Park.
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